Wage growth accelerated and came out above the average market forecast while improvement in employment keeps momentum last month. Rising price inflation begins to pass through into the wage inflation. Recently, local newspapers brought evidence of an increasing activity of labor unions calling for higher wages as CPI steadily accelerated since last summer. Both data sets suggest that the domestic demand is likely to keep strong gains coming months. The combination of price/wage inflation and doubledigit annual growth of retail sales could force the central bank to tighten monetary conditions soon again.
Average gross wage (April): 5.9% yoy (consensus: 4.7% yoy)
Employment (April): 3.9% yoy (consensus: 4.0% yoy)